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[Note to editors: See the cover and graphics in this
packet to go with the following article.]
NIXON PRESENTS THE "ENERGY CRISIS."
KEEPING THE OIL COMPANIES IN THE DRIVER'S SEAT
LIBERATION News Service
"In assessing the strategy of the major oil
companies as regards new energy sources, one fundamental starting point can never be overestimated»
Namely, the overriding goal of these companies is
to make as much money as possib le » "
--an economist close to the oil industry
NEW YORK (LNS)--President Nixon went before the
nation November 7 to formally announced that the
great "Energy Crisis" is upon us. Of course it wasn't
really news. The oil companies have been bombarding
us with that same message for well over a year now
and many people have wondered why Nixon waited as
long as he did.
Calling his new strategy "Project Independence,"
Nixon placed the blame for the present shortages on
"the recent conflict in the Middle East" that prompted an Arab embargo of oil to the U.S. He failed to
note, however, that Arab oil makes up only about
6% of the daily U.S. consumption.
To combat the present problems, Nixon presented
a series of plays ranging from lowering thermostats
to 65 degrees to speeding up construction of nuclear
power plants, reducing highway speed limits and putting a new emphasis on coal as the answer to our
energy problems.
He also asked Congress for broad executive powers
"to meet the energy emergency." These would include
relaxing environmental regulations already on the
books.
Much of Nixon's speech was spent trying to rally
Americans behind the crisis, with historical references to the energy shortages necessary for the
World War II war effort, and to the Manhattan Project--
top secret atomic research which led to the bombing
of Hiroshima and Nagasaki.
"The fuel crisis need not mean genuine suffering for any American," said Nixon. "But it will require some sacrifice by all Americans.
Certainly the energy shortage has already had
its effect on people in this country. Last winter
many communities were threatened with serious shortages of home heating fuels. At one point the Denver
school system was forced to operate on a three-day
week in order to help conserve its shrinking supply
of fuel.
This summer gasoline prices rose steadily, many
gas stations closed down for lack of fuel and there
were 10 gallon limits and long lines at the gas
stations that did remain open.
But the winter of 1973-74 promises to be the
worst yet. Already factories have been forced to
slow down or stop production because of the shortages,
thus throwing people out of work. And school systems
are going on three and four day weeks. Residents of
Rochdale Village, a 24,000 person housing project
in Queens, New York, have been told that there will
be no heat and hot water after November 22.
Paragon Oil, Rochdale's supplier, has cut the
November fuel quota by 30% and the project's manager estimates that it will be 224,000 gallons
short of what it needs »
But contrary to Nixon's claim, not all_ Americans will have to sacrifice because of the energy
crisis.
The Energy Monopolies
The profit picture for the major oil companies
has actually improved. In the first quarter of
1973 profits for the world's seven largest oil
corporations were greater than in any other three
month period in their history.
EXXON (formerly Standard of New Jersey), the
world's largest oil company, increased its earnings by more than 40% over profits made in the
first quarter of 1972, EXXON's net income in 1972
was $1.5 billion
Though you'd never know it from coverage of
the energy crisis in the mass media—or the oil
company's advertising pitches—these corporations
wield incredible power. In addition to their
vast oil holdings, which include all aspects of
oil production from reserves to wells, tankers
and refineries, the oil companies also control
most coal, natural gas, and a sizable chunk of the
uranium market■
And home turf for the oil companies is the
world—from the U.S, to the Middle East and Africa,
from Latin America to Canada, Australia and Southeast Asia..
During Senate Subcommittee hearings on Anti-
Trust and Monopoly in May of 1969, Senator George
Aiken (R-Vt) testified that over half of the coal
sold in the U.S, by 1969 was by oil companies
"who have now virtually gained possession of the
larger mines in this country." Half of the world's
known coal reserves are in the U.S.
In those same hearings, a government official
reported that by the end of the sixties the oil
companies controlled 14% of uranium production,
40% of uranium exploration and drilling and 45%
of the reserves. EXXON is involved in nuclear
fabrication as well as uranium mining, while Gulf
Oil has entered not only mining and fabrication
but also into building nuclear reactors and reprocessing spent uranium.
And since natural gas normally is physically
associated with crude oil, it's not surprising that
the big American oil companies also have huge
resources of natural gas.
With all the eggs in their basket, the oil
companies—or energy monopolies —can do pretty
much as they please, And profits please,
For instance, in the long run, it's true that
supplies of natural gas are being eaten up at an
incredible rate by the U.S. But, in the short run.,
a highly profitable squeeze on natural gas supplies
can be stimulated very easily just by holding
gas from 500 fully drilled wells on the continental shelf off Louisiana out of the market. And
that's exactly what the oil companies have done.
By creating a self-made scarcity of fuel, they
PAGE 1
LIBERATION News Service
(#569)
November 17, 1973
more

Copyright belongs to the individuals who created them or the organizations for which they worked. We share them here strictly for non-profit educational purposes. If you believe that you possess copyright to material included here, please contact us at asklibrary@wisconsinhistory.org. Under the fair use provisions of the U.S. copyright law, teachers and students are free to reproduce any document for nonprofit classroom use. Commercial use of copyright-protected material is generally prohibited.

Owner

GI Press Project/Private Collection; The International Institute of Social History Library Collections: Gift of John Mage; The International Institute of Social History Library Collections; Brünn, Harris Watts Collection - Serials and Press Release Soldiers Movements, International Institute of Social History, Amsterdam

Copyright belongs to the individuals who created them or the organizations for which they worked. We share them here strictly for non-profit educational purposes. If you believe that you possess copyright to material included here, please contact us at asklibrary@wisconsinhistory.org. Under the fair use provisions of the U.S. copyright law, teachers and students are free to reproduce any document for nonprofit classroom use. Commercial use of copyright-protected material is generally prohibited.

Owner

GI Press Project/Private Collection; The International Institute of Social History Library Collections: Gift of John Mage; The International Institute of Social History Library Collections; Brünn, Harris Watts Collection - Serials and Press Release Soldiers Movements, International Institute of Social History, Amsterdam

Full text

[Note to editors: See the cover and graphics in this
packet to go with the following article.]
NIXON PRESENTS THE "ENERGY CRISIS."
KEEPING THE OIL COMPANIES IN THE DRIVER'S SEAT
LIBERATION News Service
"In assessing the strategy of the major oil
companies as regards new energy sources, one fundamental starting point can never be overestimated»
Namely, the overriding goal of these companies is
to make as much money as possib le » "
--an economist close to the oil industry
NEW YORK (LNS)--President Nixon went before the
nation November 7 to formally announced that the
great "Energy Crisis" is upon us. Of course it wasn't
really news. The oil companies have been bombarding
us with that same message for well over a year now
and many people have wondered why Nixon waited as
long as he did.
Calling his new strategy "Project Independence"
Nixon placed the blame for the present shortages on
"the recent conflict in the Middle East" that prompted an Arab embargo of oil to the U.S. He failed to
note, however, that Arab oil makes up only about
6% of the daily U.S. consumption.
To combat the present problems, Nixon presented
a series of plays ranging from lowering thermostats
to 65 degrees to speeding up construction of nuclear
power plants, reducing highway speed limits and putting a new emphasis on coal as the answer to our
energy problems.
He also asked Congress for broad executive powers
"to meet the energy emergency." These would include
relaxing environmental regulations already on the
books.
Much of Nixon's speech was spent trying to rally
Americans behind the crisis, with historical references to the energy shortages necessary for the
World War II war effort, and to the Manhattan Project--
top secret atomic research which led to the bombing
of Hiroshima and Nagasaki.
"The fuel crisis need not mean genuine suffering for any American" said Nixon. "But it will require some sacrifice by all Americans.
Certainly the energy shortage has already had
its effect on people in this country. Last winter
many communities were threatened with serious shortages of home heating fuels. At one point the Denver
school system was forced to operate on a three-day
week in order to help conserve its shrinking supply
of fuel.
This summer gasoline prices rose steadily, many
gas stations closed down for lack of fuel and there
were 10 gallon limits and long lines at the gas
stations that did remain open.
But the winter of 1973-74 promises to be the
worst yet. Already factories have been forced to
slow down or stop production because of the shortages,
thus throwing people out of work. And school systems
are going on three and four day weeks. Residents of
Rochdale Village, a 24,000 person housing project
in Queens, New York, have been told that there will
be no heat and hot water after November 22.
Paragon Oil, Rochdale's supplier, has cut the
November fuel quota by 30% and the project's manager estimates that it will be 224,000 gallons
short of what it needs »
But contrary to Nixon's claim, not all_ Americans will have to sacrifice because of the energy
crisis.
The Energy Monopolies
The profit picture for the major oil companies
has actually improved. In the first quarter of
1973 profits for the world's seven largest oil
corporations were greater than in any other three
month period in their history.
EXXON (formerly Standard of New Jersey), the
world's largest oil company, increased its earnings by more than 40% over profits made in the
first quarter of 1972, EXXON's net income in 1972
was $1.5 billion
Though you'd never know it from coverage of
the energy crisis in the mass media—or the oil
company's advertising pitches—these corporations
wield incredible power. In addition to their
vast oil holdings, which include all aspects of
oil production from reserves to wells, tankers
and refineries, the oil companies also control
most coal, natural gas, and a sizable chunk of the
uranium market■
And home turf for the oil companies is the
world—from the U.S, to the Middle East and Africa,
from Latin America to Canada, Australia and Southeast Asia..
During Senate Subcommittee hearings on Anti-
Trust and Monopoly in May of 1969, Senator George
Aiken (R-Vt) testified that over half of the coal
sold in the U.S, by 1969 was by oil companies
"who have now virtually gained possession of the
larger mines in this country." Half of the world's
known coal reserves are in the U.S.
In those same hearings, a government official
reported that by the end of the sixties the oil
companies controlled 14% of uranium production,
40% of uranium exploration and drilling and 45%
of the reserves. EXXON is involved in nuclear
fabrication as well as uranium mining, while Gulf
Oil has entered not only mining and fabrication
but also into building nuclear reactors and reprocessing spent uranium.
And since natural gas normally is physically
associated with crude oil, it's not surprising that
the big American oil companies also have huge
resources of natural gas.
With all the eggs in their basket, the oil
companies—or energy monopolies —can do pretty
much as they please, And profits please,
For instance, in the long run, it's true that
supplies of natural gas are being eaten up at an
incredible rate by the U.S. But, in the short run.,
a highly profitable squeeze on natural gas supplies
can be stimulated very easily just by holding
gas from 500 fully drilled wells on the continental shelf off Louisiana out of the market. And
that's exactly what the oil companies have done.
By creating a self-made scarcity of fuel, they
PAGE 1
LIBERATION News Service
(#569)
November 17, 1973
more